Currently, I have a 403(b) annuity account with my employer, and I am interested in a transfer, while remaining employed. On this account, my employer did not make matching contributions; instead, they have another retirement account where they make matching contributions. At the time, I needed my income to be tax deferred, and I was not allowed to contribute to the matching retirement account during my first year of employment, so my employer provided a 403(b) annuity that was non-matching, but at least tax deferred. Of course, I stop contributing to the 403 (b) annuity after the first year.

I have been reading regarding transferring, and how one can use the IRS's 90-24 transfer rule to transfer a 403(b) to a custodial 403(b)(7). My questions are:1. Does my current 403(b) plan have to give allowances for transfers to custodial 403(b)(7) or do new IRS rules give employees allowances for transfers to any custodial 403(b)(7) of their choosing regardless of what my current 403(b) thinks? 2. Once a 403(b)(7) custodial account is setup, can that account be converted to a Rollover IRA and ultimately converted to a ROTH IRA? (I know that if I terminated services with my employer that I could rollover my 403(b) to a Rollover IRA.)

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